Contract for Software Development Services​

What is a software development contract?

A software development contract is a legally binding document between the client and software developer for the development and release of software, such as an app, website, SaaS platform, etc. This document helps define mutual responsibilities of both parties, payment terms, project scope, dispute resolution, confidentiality and intellectual property rights clauses.

This contract for software development services helps individuals, businesses, freelance developers and IT consulting agencies across the UK to order and provide services in a professional and compliant manner.

For the provision of other types of services, a general service agreement or master services contract template should be used instead.

Who should use this software development contract​?

Having a professional and well-drafted contract for the provision of software development services can be helpful for:

UK businesses and individual clients

Whether you need a mobile application for a local food delivery company or a major SaaS platform for a bank application, the first step is to hire a software developer. A written contract from FasterDraft significantly saves your time for drafting documents from scratch. This template incorporates best business practices to ensure that your rights as a customer and client are fully protected within the UK legal framework.

Freelance Software Developers

If you are a freelance software developer and work independently, having a written software developer contract template is a must. It does not only make you look more professional in the eyes of potential clients but also significantly reduces risks of potential disputes in the future. If you operate as a one-man company or as a start-up, hiring a lawyer may not be an option for you. By customising this document with FasterDraft, you receive solid legal protection against unpaid invoices, scope creep and disputes.

Software Development Agencies

If you are running an IT consulting firm or technology company, negotiating contractual terms from scratch with every new client can be time-consuming. Therefore, having one solid template can save you time and look professional while onboarding new clients.

What should be covered by this software development contract template UK?

A standard contract for the provision of software services in the UK should include the following:

Project Scope

In this section parties have to outline what should be created under the contract, including the description of the final deliverable, also known as an ‘output’. The standard clause should define:

• type of software (for example, mobile application, SaaS platform);
• name of a software; and
• brief description of the software’s functionality.

The parties should also decide if the design of the software should be included in the scope. Some freelance IT agencies or consulting companies offer a one-stop shop for all related services. If design is not included in the project scope, a client has to engage a graphic designer separately by signing an additional general service contract.

Timeline

It is common for a software developer contract template to include the following:

• the date of commencement of provision of services;
• list of milestones (for example, design stage, UX stage, deployment);
• key dates;
• testing period; and
• post-release support (if available).

Payment Terms

The present contract template can have either of the following payment models: per milestone, per hour or fixed-price contract software development. The most common scenario is a fixed price that could be paid in separate instalments upon completion of each milestone. The text of the document should also include the following:

• amount of fee in pounds, exclusive of VAT;
• timeline for issuing invoices;
• acceptable payment methods;
• late fees and penalties for a client in case of non-payment.

Termination Rights

The standard rules and principles of contract law shall apply to the termination of this contract. The contract shall provide:

• Early termination. Either party should be able to end this contract at any time by sending a prior written notice to the other party.
• Mutual termination. The termination of this contract is also possible upon signing a mutual agreement on termination by both parties.
• Immediate termination. If the service provider or the client is insolvent, the contract is deemed to be terminated immediately as per the Insolvency Act 1986.
• Material breach. If either party commits a material breach which is not being remedied within 21 days, the contract can be terminated immediately.

What are the benefits of this custom software development contact?

By customising this contact template with FasterDraft, you get the document with the following benefits:

• a document that is ready for use in England, Wales, Scotland or Northern Ireland;
• a document in line with general principles of UK contract law;
• a document that includes all essential clauses like confidentiality and dispute resolution;
• a document in editable format;
• a document suitable for multiple usages;
• a document that you get for life;
• a template that has a clear structure and a professional wording;
• a document created by qualified solicitors.

How to customise this software development contract agreement?

To get a fully customisable document template, follow a few easy steps below:

1. Click the “Create Document” button.
2. Answer simple questions in the form.
3. Select a template’s format – PDF or Word.
4. E-sign the document online.
5. Make a payment.

The document is ready for immediate download and use right after the purchase.